Ace Manufacturing uses a standard costing system. What amount is debited to the Work in Process Inventory when labor is incurred in production?

Question

Quizplus · Accepted Answer

In a standard costing system, the Work in Process Inventory account is debited with the standard labor cost for the actual labor hours used. Therefore, the standard labor hours used times the standard rate per hour is the amount debited to the Work in Process Inventory.

Ace Manufacturing Uses a Standard Costing System